Peter Mandelson the UK government’s Business Secretary has announced a series of measures designed to help small to medium sized UK Businesses (SME) solve their current cash flow liquidity, credit and investment problems
The support package entails the Government underwriting loan guarantees and the founding of a new Enterprise Fund designed to help SME companies struggling to access loans for working capital, wages and company investment.
The Government measures include:
* A £10bn Working Capital Scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m
* An Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m
* A £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity
Whilst we welcome measures to assist small businesses during the current credit crunch for falling into liquidation, questions must be asked of a socialist Governments role in underpinning a free enterprise society.
SME businesses can save on their commercial insurance in 2009 by shopping around the many online business insurance websites that now offer commercial insurance packages online for virtually every trade and profession.